1. Profile photo of fahim231 says

    I’m slightly confused about this…………when it says she earns a equivalent of a lump sum of 2,000, does this mean altogether for these 5 years she gets 2,000 or does it mean she get 2,000 every year for 5 years?

      • Profile photo of fahim231 says

        the question states “that the pension benefits which she will earn, for each of the next
        five years, are the equivalent of a lump-sum on retirement of $2,000” – I took this to mean that the total lump sum over 5 years she would receive is 2,000?

  2. avatar says

    Hi, Mike

    One of my company’s benefit for management staff is giving a “grant” called Long Term Incentive Plan (LTIP), which they will state in this grant letter how much they will pay you a lump sum in 3 years time with terms and condition. It will be “burn” if you resign within that period of 3 years. Grant is renewed every 3 years.

    My Q (for my understanding of terminology of “Post Employment Benefits” as per IAS 19)

    Does LTIP being defined as “post employmen benefit”?

    My confusion-after completion of employment. Does that mean after resigning as well? Retiring-for me, no confusion here. I believe it should fit into this terminology. Am I correct for this?

    Thank you in advance.

    • Profile photo of MikeLittle says

      I don’t think this is an employee benefit under IAS 19

      It sounds more like a share-based payment under IFRS 2 except there are no shares apparently involved.

      I imagine the same rules apply calculate the total value involved. Divide by 3. Dr PorL by that amount for each of 3 years building up the obligation and, at the end of 3 years, settle the obligation.

      Hope that helps

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